Interim Results

28 Jun 2005 07:00

Blue Star Capital plc28 June 2005 For immediate release 28 June 2005 BLUE STAR CAPITAL PLC ("Blue Star" or "the Company") Interim Results for the period ended 31 March 2005 Blue Star Capital plc (AIM: BLU), the company created to provide seed capitalfor early stage companies, is pleased to announce its maiden interim results forthe period ended 31 March 2005. Highlights • Blue Star joined AIM in October 2004, having successfully raised gross proceeds of £5.5m • The Company has built a portfolio of four investments in AIM-traded shell companies focussed on a variety of sectors • Blue Star has invested a total of £1.16 million in these investments • Turnover for the period was £50,000 and pre-tax losses were £75,268 • Net cash as of 31 March 2005 was £3.94 million • Post the period end Blue Star invested in Medcenter Holdings Inc. • The Company's priority is for its shell company investments to complete acquisitions in the near term Nigel Robertson, Blue Star Capital's Executive Chairman, commented: "We havemade significant progress in executing our strategy since joining AIM. Ourpriority now is to ensure the completion of acquisitions at our shellinvestments with the objective of building value for our shareholders." ENDS For further information: Blue Star Capital plc Tel: 020 7070 7283Nigel Robertson, ChairmanHaresh Kanabar, Chief Executive Panmure Gordon & Co Tel: 020 7459 3600Jonathan RetterKatherine Roe Buchanan Communications Tel: 020 7466 5000Mark CourtElly Williamson CHAIRMAN'S STATEMENT I am pleased to report Blue Star Capital's maiden interim results for the periodended 31 March 2005, a period of great significance in the development of theCompany and during which the foundations have been laid for the future growth ofthe company. Blue Star was formed to provide seed capital for early stage companies andthereby to create a diverse portfolio of investments from which to build capitalvalue for shareholders. This strategy was endorsed in October last year when theCompany joined the AIM market after successfully raising gross proceeds of £5.5million. I am pleased to report that the Company has made considerable progress inexecuting its strategy since admission to AIM. Four investments have already been made in newly formed shell companiestargeting acquisition opportunities across a variety of sectors ranging fromproperty development to telecoms, media and technology. All four of thesecompanies - India Outsourcing Services plc, Black Raven Properties plc, GordianInvestments plc and Gasol plc - have joined the AIM market. Now that the Company has established its initial portfolio of investments, theBoard's focus is on overseeing the successful completion of acquisitions at eachof the investments. Significant progress has already been made in identifyingand evaluating potential acquisitions and I look forward to updatingshareholders in due course. Post the period end, Blue Star made a fifth investment through taking a minoritystake in Medcenter Holdings Inc, a leading provider of e-marketing intelligenceand relationship marketing solutions to the pharmaceutical industry. Our financial performance during the first half was in line with managementexpectations. Turnover was £50,000, reflecting advisory fee income and interestreceivable in the period amounted to £84,521. The pre-tax loss was £75,268, andloss per share was 0.07p. Net cash was £3.94 million as of 31 March 2005. We look forward to the future with confidence. Nigel RobertsonExecutive Chairman BLUE STAR CAPITAL PLC : INTERIM RESULTS Profit and Loss AccountFor the period ended 31 March 2005 ( unaudited ) period ended 31-Mar-05 ( unaudited ) Note £ Turnover 50,000 Other operating expenses (net) (209,789) Operating loss (159,789) Other interest receivable and similar income 84,521 Loss on ordinary activities before taxation (75,268) Taxation 2 0 Loss after taxation (75,268) Loss per share 4 (0.07) p All recognised gains and losses are included in the profit and loss account. BLUE STAR CAPITAL PLC : INTERIM RESULTS Balance SheetAs at 31 March 2005 ( unaudited ) 31-Mar-05 ( unaudited ) Note £ Fixed AssetsOffice Equipment 10,384Investments 1,161,010Total Fixed assets 1,171,394 Current AssetsCash at bank 3,939,544Debtors & prepayments 65,181 4,004,725 Creditors: amounts falling due within one year (128,605)Net Current Assets 3,876,120 Net Assets 5,047,514 Net Assets Capital and reservesShare capital issued and fully paid up 105,500Share premium account 5,017,282Profit & loss account (75,268) Shareholders' Funds 5,047,514 BLUE STAR CAPITAL PLC : INTERIM RESULTS Cash flow statementFor the period ended 31 March 2005 ( unaudited ) period ended 31-Mar-05 ( unaudited ) £ Net cash outflow from operating activities (95,914) Returns on investments and servicing of financeInterest Received 84,521 Cash outflow before financing and use of liquid resources (11,393) Capital expenditure and financial investmentPurchase of tangible fixed assets (10,835)Purchase of Investments (1,161,010) Net cash outflow from capital expenditure and financial investment (1,171,845) FinancingIssue of shares 5,122,782 Net cash inflow from financing 5,122,782 Increase in cash 3,939,544 Notes to the interim report 1: BASIS OF PREPARATION The interim accounts for the period ended 31 March 2005 are unaudited and do notconstitute statutory accounts in accordance with section 240 of the CompaniesAct 1985. The financial information has been prepared in accordance with applicableaccounting standards and under the historical cost accounting convention. 2: TAXATION There is no tax charge for the period due to the loss arising. 3: DIVIDENDS The Directors are not declaring a dividend for the period ended 31 March 2005. 4: LOSS PER SHARE The calculation of the loss per share is based on the loss for the period of£75,268 and the weighted average number of shares in issue during the period of105,500,000 COPIES OF INTERIM RESULTS Copies of the interim results are available from the Company's office, 22 SohoSquare, London W1D 4NS This information is provided by RNS The company news service from the London Stock Exchange